ICICI Bank, SIXT India in financing tie-up

26 October 2006

Sixt India is the master franchises for Sixt AG, leading European car rental, leasing and fleet management company.

The ICICI Bank-Sixt financial alliance will provide a complete vehicle leasing and fleet management solution, which includes residual value-based leasing, maintenance, repair, insurance management, accident management, fuel management, upgrade options and easy walkout options in case of employee severance for corporate clients.

Beginning with car leases for corporates, the two companies together plan to offer this service to retail customers beginning 2008. Both companies see a growing business opportunity with the Indian economy, the fourth largest in the world, poised to grow at over 8 per cent per year in the years ahead. Sixt has projected growth of around 70 per cent, more than twice the industry growth rate, and hopes to sustain this rate over the next few years.

Commenting on the occasion, Sachin Khandelwal, head, vehicle finance, ICICI Bank said, "The Bank's alliance with Sixt India will comprehensively address the growing requirements of corporates for leasing and fleet management of their vehicles. The leasing market is growing rapidly and provides a good business opportunity to both the partners."

Sunjay J Kapur, Vice Chairman & Managing Director Sixt India, said, "The corporate vehicle leasing market in India is pegged at Rs1,500 crore and is expected to grow at the rate of 30-40 percent y-o-y".

Explaining the growth potential for this service, Kapur said, "The vehicle leasing market in India is limited only to large corporates. Sixt and ICICI Bank will together tap the medium and small-scale enterprises (thus opening new segments) and we hope our product will create a demand for close to 35,000 cars by the end of five years".